Bitcoin shows signs of decoupling from US equities, could reclaim $100K
The post Bitcoin shows signs of decoupling from US equities, could reclaim $100K appeared on BitcoinEthereumNews.com.
Key Takeaways Bitcoin’s resilience hints at a structural break from stock market movements. The emerging pattern of independent price action positions Bitcoin towards the $100,000 level. Stocks dipped, gold slipped, but Bitcoin bounced. That’s the big story from this week’s tariff shake-up. Bitcoin is exhibiting early signs of breaking its correlation with US equities as it remained resilient above the $82,000 mark during a Friday downturn that erased $2.5 trillion from the S&P 500 Index. Markets reeled Thursday in the first full session after President Trump’s tariff announcement, setting the stage for a two-day sell-off that wiped out over $5 trillion of US equities. By the end of Friday, the S&P 500 and Nasdaq Composite had both tumbled nearly 6%, and the Dow plunged 5.5%—its biggest one-day loss since June 2020. Bitcoin did show some pullbacks as soon as tariffs were announced, falling to $81,500 in the wake of the announcement. However, it swiftly rebounded to reach $84,600 by Friday. On Friday, despite facing renewed pressure in the early hours, the digital asset demonstrated resilience—stabilizing and climbing back above $84,000 during intraday trading. At the time of writing, Bitcoin was changing hands at around $83,700, with a slight decrease over the past 24 hours, according to TradingView. Commenting on Bitcoin’s recent break from stocks, Blockstream CEO Adam Back stated that the prior correlation between Bitcoin and traditional markets might have been more of a byproduct of market dynamics, possibly driven by market maker activity exploiting liquidity conditions. “[I] was thinking the coupling was fake. Maybe market makers [were] using Bitcoin market shortage of fiat liquidity to auto-correlate Bitcoin, noticeable on US market [opening],” he said. The divergence in behavior may signal that Bitcoin is entering a phase of independent price action, which could support Bitcoin’s movement toward the $100,000 price…
Filed under: News - @ April 5, 2025 6:16 am